The client:
Mr B (short for Be) runs his own glazing business. He owns his own home worth $700,000, with a mortgage of $450,000. He is seeking to buy an investment property, with a loan of $500,000.
The problem:
He has already been refused by 3 banks (CBA, Westpac and Macquarie) because his ATO debt of $112,000 means he cannot service the proposed investment loan as well as the ATO payment plan at the same time. He has also missed 2 Credit Card repayments in the last 6 months and his Credit Score is only 490.
The solution:
A Non-bank lender with owner occupied loan rates (6.69%). This lender does not look at Credit score. They ignore repayment history of any debt they are not refinancing (Credit Card). His mortgage was OK and he had enough equity that they allowed him to borrow to pay off the ATO debt.
He now has an investment property and no ATO debt.
